Correlation Between Haemonetics and LeMaitre Vascular
Can any of the company-specific risk be diversified away by investing in both Haemonetics and LeMaitre Vascular at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Haemonetics and LeMaitre Vascular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haemonetics and LeMaitre Vascular, you can compare the effects of market volatilities on Haemonetics and LeMaitre Vascular and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Haemonetics with a short position of LeMaitre Vascular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haemonetics and LeMaitre Vascular.
Diversification Opportunities for Haemonetics and LeMaitre Vascular
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haemonetics and LeMaitre is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and LeMaitre Vascular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeMaitre Vascular and Haemonetics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Haemonetics are associated (or correlated) with LeMaitre Vascular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeMaitre Vascular has no effect on the direction of Haemonetics i.e., Haemonetics and LeMaitre Vascular go up and down completely randomly.
Pair Corralation between Haemonetics and LeMaitre Vascular
Considering the 90-day investment horizon Haemonetics is expected to generate 5.15 times less return on investment than LeMaitre Vascular. But when comparing it to its historical volatility, Haemonetics is 1.18 times less risky than LeMaitre Vascular. It trades about 0.02 of its potential returns per unit of risk. LeMaitre Vascular is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,405 in LeMaitre Vascular on August 28, 2024 and sell it today you would earn a total of 4,304 from holding LeMaitre Vascular or generate 67.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haemonetics vs. LeMaitre Vascular
Performance |
| Timeline |
| Haemonetics |
| LeMaitre Vascular |
Haemonetics and LeMaitre Vascular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haemonetics and LeMaitre Vascular
The main advantage of trading using opposite Haemonetics and LeMaitre Vascular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haemonetics position performs unexpectedly, LeMaitre Vascular can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LeMaitre Vascular will offset losses from the drop in LeMaitre Vascular's long position.| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
| LeMaitre Vascular vs. InfuSystems Holdings | LeMaitre Vascular vs. Pro Dex | LeMaitre Vascular vs. Utah Medical Products | LeMaitre Vascular vs. Milestone Scientific |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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